BurgerFi Reaches Legal Settlement Agreement with Lion Point Capital, LP
BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) has reached a Settlement Agreement with Lion Point Capital, LP to resolve all claims related to previously disclosed litigation. The settlement terms include:
1. BurgerFi to pay Lion Point $1,350,000 in installments
2. BurgerFi to issue 300,000 shares of Series A Preferred Stock to Lion Point
The lawsuit, filed on August 26, 2022, alleged that BurgerFi failed to timely register Lion Point's shares. The settlement aims to avoid further time, expense, and risks associated with ongoing litigation. BurgerFi's Chairman, David Heidecorn, expressed satisfaction in resolving the matter and stated the company's intention to continue exploring strategic alternatives in the best interests of the company and its stakeholders.
BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) ha raggiunto un Accordo di Risoluzione con Lion Point Capital, LP per risolvere tutte le rivendicazioni relative a contenziosi precedentemente divulgati. I termini dell'accordo includono:
1. BurgerFi pagherà a Lion Point 1.350.000 dollari in rate
2. BurgerFi emetterà 300.000 azioni di azioni privilegiate di Serie A a Lion Point
La causa, intentata il 26 agosto 2022, sosteneva che BurgerFi non avesse registrato in tempo le azioni di Lion Point. L'accordo mira ad evitare ulteriori spese di tempo, costi e rischi associati a un contenzioso in corso. Il presidente di BurgerFi, David Heidecorn, ha espresso soddisfazione per la risoluzione della questione e ha dichiarato l'intenzione della società di continuare a esplorare alternative strategiche a beneficio della società e dei suoi stakeholders.
BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) ha alcanzado un Acuerdo de Liquidación con Lion Point Capital, LP para resolver todas las reclamaciones relacionadas con litigios divulgados anteriormente. Los términos del acuerdo incluyen:
1. BurgerFi pagará a Lion Point $1,350,000 en cuotas
2. BurgerFi emitirá 300,000 acciones de acciones preferentes de Serie A a Lion Point
La demanda, presentada el 26 de agosto de 2022, alegaba que BurgerFi no registró a tiempo las acciones de Lion Point. La liquidación tiene como objetivo evitar más tiempo, gastos y riesgos asociados con el litigio en curso. El presidente de BurgerFi, David Heidecorn, expresó su satisfacción por haber resolvido el asunto y declaró la intención de la compañía de continuar explorando alternativas estratégicas en el mejor interés de la empresa y sus partes interesadas.
BurgerFi International, Inc. (NASDAQ: BFI, BFIIW)는 모든 주장을 해결하기 위해 Lion Point Capital, LP와 합의 계약에 도달했습니다. 합의 조건은 다음과 같습니다:
1. BurgerFi는 Lion Point에게 $1,350,000을 분할 지급합니다.
2. BurgerFi는 Lion Point에게 300,000주의 A종 우선주를 발행합니다.
2022년 8월 26일에 제기된 이 소송은 BurgerFi가 Lion Point의 주식을 제때에 등록하지 않았다고 주장했습니다. 이 합의는 진행 중인 소송과 관련된 추가 시간, 비용 및 위험을 피하기 위한 것입니다. BurgerFi의 회장인 David Heidecorn은 이 문제를 해결한 것에 대한 만족을 표하고, 회사와 이해관계자를 위한 최선의 이익을 고려하여 전략적 대안을 지속적으로 모색할 의사를 밝혔습니다.
BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) a conclu un Accord de Règlement avec Lion Point Capital, LP afin de résoudre toutes les revendications liées aux litiges précédemment divulgués. Les termes du règlement incluent :
1. BurgerFi versera à Lion Point 1.350.000 $ par versements
2. BurgerFi émettra 300.000 actions d'actions privilégiées de la série A à Lion Point
Le procès, déposé le 26 août 2022, alléguait que BurgerFi n'avait pas enregistré en temps voulu les actions de Lion Point. Le règlement vise à éviter de nouveaux temps, coûts et risques associés à des litiges en cours. Le président de BurgerFi, David Heidecorn, a exprimé sa satisfaction quant à la résolution de cette question et a déclaré que l'entreprise avait l'intention de continuer à explorer des alternatives stratégiques dans le meilleur intérêt de l'entreprise et de ses parties prenantes.
BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) hat eine Vergleichsvereinbarung mit Lion Point Capital, LP getroffen, um alle Ansprüche im Zusammenhang mit zuvor offengelegten Rechtsstreitigkeiten zu lösen. Die Bedingungen des Vergleichs umfassen:
1. BurgerFi wird Lion Point 1.350.000 Dollar in Raten zahlen
2. BurgerFi wird Lion Point 300.000 Aktien der Serie A Vorzugsaktien ausgeben
Die Klage, die am 26. August 2022 eingereicht wurde, behauptete, dass BurgerFi die Aktien von Lion Point nicht rechtzeitig registriert habe. Der Vergleich zielt darauf ab, weiteren Zeit-, Kosten- und Risikofaktoren im Zusammenhang mit laufenden Rechtsstreitigkeiten vorzubeugen. Der Vorsitzende von BurgerFi, David Heidecorn, äußerte seine Zufriedenheit über die Lösung des Themas und erklärte die Absicht des Unternehmens, weiterhin strategische Alternativen im besten Interesse des Unternehmens und seiner Stakeholder zu erkunden.
- Resolution of ongoing litigation, reducing legal uncertainties
- Potential for exploring strategic alternatives without legal distractions
- Payment of $1,350,000 to Lion Point Capital, impacting cash reserves
- Issuance of 300,000 shares of Series A Preferred Stock, potentially diluting existing shareholders
Insights
The settlement between BurgerFi and Lion Point Capital marks a significant financial event for the company. The $1,350,000 cash payment and issuance of 300,000 Preferred Shares will impact BurgerFi's liquidity and capital structure. While the cash outlay may strain short-term finances, resolving the litigation removes a potential obstacle for future strategic moves.
The issuance of Preferred Shares is particularly noteworthy. These shares often come with priority dividend payments and liquidation preferences, potentially diluting common shareholders' interests. Investors should closely monitor how this affects BurgerFi's capital structure and future earnings distribution.
From a market perspective, this settlement could be viewed positively as it eliminates legal uncertainty. However, the financial burden and share issuance might raise concerns about the company's negotiating position and financial health. It's important to assess how this settlement fits into BurgerFi's broader strategy, especially given the Chairman's mention of exploring strategic alternatives.
This settlement resolves a significant legal challenge for BurgerFi, stemming from allegations of failing to timely register Lion Point's shares. The resolution without admission of fault is a common legal strategy, allowing both parties to move forward without the risks and costs of continued litigation.
The structure of the settlement - combining cash payments and issuance of Preferred Shares - is intriguing. It suggests a compromise that addresses Lion Point's immediate concerns while potentially giving them a stronger position in BurgerFi's future. The 300,000 Preferred Shares could grant Lion Point enhanced rights, possibly including board representation or veto powers on certain corporate actions.
Investors should be aware that while this settles the current litigation, the underlying issue of share registration rights remains a critical corporate governance matter. BurgerFi will need to ensure strict compliance with such agreements in the future to avoid similar disputes. The settlement's impact on BurgerFi's relationship with other significant shareholders and potential future investors should also be considered.
This settlement comes at a important time for BurgerFi, as the fast-casual restaurant industry faces challenges from inflation and changing consumer behaviors. The resolution of this legal dispute allows management to refocus on core business strategies and the exploration of strategic alternatives, as mentioned by the Chairman.
The market's reaction to this news will likely be mixed. On one hand, the elimination of legal uncertainty is positive. On the other, the financial terms of the settlement may raise questions about BurgerFi's negotiating leverage and financial position. The issuance of Preferred Shares to Lion Point could be seen as a significant concession, potentially altering the balance of power among shareholders.
Investors should closely monitor how this settlement affects BurgerFi's ability to execute its growth strategy, particularly in the competitive 'better burger' and pizza segments. The mention of exploring strategic alternatives suggests that more significant changes could be on the horizon. This settlement might be viewed as clearing the deck for potential M&A activity, restructuring, or other major corporate actions.
FORT LAUDERDALE, Fla., July 25, 2024 (GLOBE NEWSWIRE) -- BurgerFi International, Inc. (NASDAQ: BFI, BFIIW) (“BurgerFi” or the “Company”), owner of the high-quality, casual dining pizza brand Anthony’s Coal Fired Pizza & Wings (“Anthony’s”) and one of the nation’s leading fast-casual “better burger” dining concepts through the BurgerFi brand, announced today that the Company and Lion Point Capital, LP (“Lion Point”) entered into a Settlement Agreement (the “Settlement Agreement”) pursuant to which, among other things, the Company and Lion Point agreed to resolve all claims between Lion Point and the Company existing as of, or prior to, the date of the Settlement Agreement related to the previously disclosed litigation initiated by Lion Point against the Company.
Pursuant to the Settlement Agreement, the Company agreed to, among other things, (i) pay Lion Point
As previously disclosed, on August 26, 2022, a lawsuit captioned Lion Point Capital, LP v. BurgerFi International, Inc., Index No. 653099/2022 (the “Action”) was filed by Lion Point in the Supreme Court of the State of New York, County of New York against the Company alleging that the Company failed to timely register Lion Point’s shares in violation of the registration rights agreement to which Lion Point and the Company are parties. The Company and Lion Point subsequently engaged in discussions to resolve the claims asserted in the Action.
Without any admission as to fault, liability or wrongdoing or as to the validity of the other party’s positions, as a result of such efforts and in order to avoid the time, expense, and risks associated with continuing to litigate the Action, on July 23, 2024, the Company and Lion Point entered into the Settlement Agreement.
"We are pleased to be putting this litigation matter with Lion Point firmly behind us. Our intention is to continue to explore strategic alternatives that we believe would be in the best interests of the Company and its stakeholders, as previously disclosed," said David Heidecorn, Chairman of the Board.
About BurgerFi International (Nasdaq: BFI, BFIIW)
BurgerFi International, Inc. is a leading multi-brand restaurant company that develops, markets, and acquires fast-casual and premium-casual dining restaurant concepts around the world, including corporate-owned stores and franchises. BurgerFi International, Inc. is the owner and franchisor of the two following brands with a combined 162 locations.
Anthony’s. Anthony’s is a premium pizza and wing brand with 60 restaurants (59 corporate-owned casual restaurant locations and one dual brand franchise location), as of April 1, 2024. Known for serving fresh, never frozen and quality ingredients, Anthony’s is centered around a 900-degree coal-fired oven with menu offerings including “well-done” pizza, coal-fired chicken wings, homemade meatballs, and a variety of handcrafted sandwiches and salads. Anthony’s was named “The Best Pizza Chain in America" by USA Today's Great American Bites, “Top 3 Best Major Pizza Chain” by Mashed in 2021, “The Absolute Best Wings in the U.S.” by Mashed in 2022, and named in “America's Favorite Restaurant Chains of 2022” by Newsweek.
BurgerFi. BurgerFi is among the nation’s fast-casual better burger concepts with 102 BurgerFi restaurants (75 franchised and 27 corporate-owned) as of April 1, 2024. BurgerFi is chef-founded and committed to serving fresh, all-natural and quality food at all locations, online and via first-party and third-party deliveries. BurgerFi uses
Forward-Looking Statements
This press release may contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995, including statements relating to BurgerFi's ability to maintain continuity of its management. Forward-looking statements generally can be identified by words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “will be,” “will continue,” “will likely result,” and similar expressions. These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause our actual results to differ materially from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in our Annual Report on Form 10-K for the year ended January 1, 2024, our subsequent Quarterly Reports on Form 10-Q, and those discussed in other documents we file with the Securities and Exchange Commission, including our ability to continue to access liquidity, to pursue and enter into a strategic transaction or seek a strategic transaction to maintain our listing on the Nasdaq Stock Exchange, and to continue as a going concern, or any other factors. All subsequent written and oral forward-looking statements attributable to BurgerFi or persons acting on BurgerFi’s behalf are expressly qualified in their entirety by the cautionary statements included in this press release. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
Investor Relations:
ICR
Michelle Michalski
IR-BFI@icrinc.com
646-277-1224
Company Contact:
BurgerFi International Inc.
IR@burgerfi.com
Media Relations Contact:
Ink Link Marketing
Kim Miller
Kmiller@inklinkmarketing.com
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